If the proceeds of a sale are paid in foreign currency, IBKR must convert the amount to be reported into US dollars. Generally, IBKR converts the foreign currency on the payment date at the spot rate or by following a reasonable spot rate convention, for example a month-end spot rate or monthly average spot rate. Your Activity Statements reflect the spot rate at the end of the applicable month or year depending upon the statement you are viewing. Interest or dividend payments are converted at the spot rate on day of payment for purposes of Form 1099 reporting.

In compliance with Treasury Department Circular 230, unless stated to the contrary, any information contained in this FAQ was not intended or written to be used and cannot be used for the purpose of avoiding tax penalties that may be imposed on any taxpayer.